FIEC-EIC Memo on EU International Procurement Instrument
Public procurement represents a substantial part of the EU economy and the economies of many countries around the world. The EU has opened its public procurement markets to a significant degree to competitors from third countries and has frequently advocated the need for more open public procurement markets, both within the context of the revised WTO Agreement on Public Procurement (GPA) and in its bilateral trade negotiations.
Many non-EU countries are reluctant, however, to open their public procurement markets to the EU. According to the European Commission, while the EU opened some €352 billion of EU public procurement to bidders that came from member countries to the GPA in 2012, foreign bidders only had access to €178 billion of US procurement and €27 billion of Japanese procurement in that same year. In addition, only a fraction of Chinese procurement is open to foreign bidders. In 2012, the Commission proposed the creation of an International Procurement Instrument (IPI). After a legislative deadlock, the Commission presented a revised proposal in 2016. In March 2019, in the context of a review of relations with China, the Commission called on the Council and Parliament to revive the trilogues based on the revised proposal, and adopt the IPI before the end of 2019. In 2021, progress appears more likely as several EU Member States have indicated that their position has changed.
FIEC and EIC firmly welcome the commitment of the EU Institutions to adopt the International Procurement Instrument (IPI) in the course of 2021. The IPI has the potential to complement the EU's trade toolbox by providing the necessary leverage for a better access of EU businesses to third countries’ procurement markets. The IPI can be successful if it entails clear, resolute and practicable restrictive measures which are applied coherently and consistently by contracting authorities and contracting entities across the EU. However, as it currently stands, the IPI will miss its main purpose of being an offensive instrument which aims at ensuring reciprocal access to public procurement markets.
FIEC and EIC call upon the EU institutions to draft an effective tool for achieving reciprocal access to public procurement markets.
For further information, please download the Memo below.